What are the risks of investing in Cash Management model portfolios? (HK)

Cash Management model portfolios is a diversified investment portfolio of cash, money market, and short duration fixed income funds. As an investment product, Cash Management model portfolios are not capital-guaranteed and it may experience periods of negative returns. The return potential of each Cash Management model portfolio is positively correlated to the risk profile of the underlying investments. Read more here for the differences between each Cash Management model portfolio.

Difference between Cash Management model portfolio and a bank deposit

When you make a deposit at a member bank of the Hong Kong Deposit Protection Scheme (DPS), it is insured for up to HK$500,000 in the event that the bank fails. As Cash Management model portfolio is an investment product and not a bank deposit, it is not insured by the DPS.

Safeguarding your financial interests

Cash Management model portfolios invest in funds, mainly money market funds and short-duration bond funds. The funds have their assets ring-fenced by fund trustees and custodians and are used for the sole objective  of growing your investments.

With fund trustees custodians in place, your assets are kept separate from Endowus, as well as fund managers such as Abrdn, Amundi, and Ping An.

Fund managers are also bounded by fund objectives as stated in the fund documentation and have strict guidelines for what the fund can and cannot invest in.

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